Treasury gave banks tax bailout too

"It was a shock to most of the tax law community. It was one of those things where it pops up on your screen and your jaw drops," said Candace A. Ridgway, a partner at Jones Day, a law firm that represents banks that could benefit from the notice. "I've been in tax law for 20 years, and I've never seen anything like this."

More than a dozen tax lawyers interviewed for this story -- including several representing banks that stand to reap billions from the change -- said the Treasury had no authority to issue the notice.

"To those to whom much is given - much more should be taken any way possible..."

Reason why frd and govt all these institutions is because they are tax havens for them. Otherwise U.S. govt would go bankrupt and not the people. Think about it you hire 100,000 people and tax all of them perfectly. While it makes it much harder in private sector next move is electronic currency this way you can tax everyone.

What about getting rid of all corporate tax and offsetting lost revenues with increased personal taxes (and tax the rich the most ..) ?

Then to stimulate capital investment (since investment results in a multiplier growth in the economy) instead of hoarding of capital, give some sort of percentage kickback for funds invested. And perhaps for those who have enormous amounts of capital sitting unused, tax cash hoards over a certain size. ie any cash/cash-equivalent balance above 1B (or some arbitrary amount depending on the sector) 2.5%/yr. Capital investment and plant improvement (not financial asset investment) might be rewarded 2.5% or even 5% of the balance.

Imagine the capital inflows that we would experience with this all considered.